VIG buys Korean food wholesaler for $69m

WinPlus claims to be one of few nationwide players in Korea's KRW47 trillion wholesale food industry, which remains highly fragmented. The 13-year-old company serves 150 grocery retailers, as well as restaurant and pub chains, through two large-scale distribution centers and seven directly-owned stores.

WinPlus offers more than 600 product categories focused primarily on chilled and frozen foods. It has its own brands in addition to distributing for third parties. Revenue for the 2017 financial year is estimated at KRW183 billion, most of it coming from restaurant owners.

Sales have registered compound annual growth of 37% over the last three years, driven by the roll-out of directly-owned stores and the development of proprietary brands. Under VIG's guidance, WinPlus plans to open more stores, expand its distribution channels, and improve its proprietary brand lines.

"The industrialization rate of Korea's B2B food wholesale industry is less than 10% currently, whereas the same industrialization rate in the European and US markets stand at 20% to 45%. WinPlus is one of the very few companies in Korea that already occupies a firm standing and a distinguished reputation within this attractive industry," Chulmin Lee, a managing partner at VIG, said in a statement.

The deal, which is scheduled to close in mid-March, will be the fifth investment from the private equity firm's third fund, which closed in February 2016 at the hard cap of $600 million. The other portfolio companies are funeral service provider Jo-Un Life, used car retailer business Autoplus, facial masks manufacturer Press & Converting, and running shoe materials provider Youyoung.

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• Topics
• North Asia
• Consumer
• Buyouts
• South Korea
• VIG Partners